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COMPREHENSIVE STATEMENT OF THE CIRCUM- 
STANCES SURROUNDING THE EXACTION 

OF THE 

JAPANESE INDEMNITY. 



Amount received from Japan ^785,000.00 

Face value of the securities composing the fund on 
January 10, 1880, and held in custody of the Depart- 
ment of State $1,040,508.03 



The following extract is a translation from an article which 
appeared in a Japanese paper, called the Hochi Shinbun, in the 
spring of 1878. It will be read with interest as an indication 
of the feeling in that country upon the question of the " Jap- 
anese indemnity." After reciting the causes which led to the 
exaction of the indemnity, the w^riter says : 

"■Notwithstanding the exigencies of the time, it was very calamitous 
for us to have to pay such a sum of money for such a cause. In those 
days the Tokngawa government was much perplexed to obtain finances 
to provide even for the requirements of the country ; and in addition, to 
increase their difficulties, came this unexpected demand for an indem- 
nity. This was, indeed, piling trouble upon trouble. When the time al- 
lowed for payment had nearly expired, the government could not collect 
the sum required ; and therefore Mr. Kurimoto, then minister of foreign 
atlairs, had much trouble and grief in his endeavors to negotiate a delay 
in payment. These sickening hardships were prolonged for a time and 
were the cause of other calamities, all inflicting fresh injuries upon our 
people. We can but look back upon this indemnity witli regret, but we 
ai-e helpless to remedy it. We have heard that Mr. Portman, who suc- 
ciieded Mr. Pruyn as minister of the United States of America, expressed 
an opinion upon the injustice of the infliction of such a fine upon Japan. 
At this da}^ it seems as if our people had almost forgotten this affair, but 
the American Government, seeing that it would be but reasonable to 
refund the indemnity to Japan, have long been discussing the matter in 
their Congress. We even hear that on the 2Sth of January, this year, 
the House of Representatives had to consider the question of restitution. 
(Here follows a translation of the measure referred to.) Thus we under- 
stand what are the feelings of Americans. We do not know what is the 
amount proposed to be refunded ; but the mere money, whether a large 
or small sum, is a secondary consideration. If the United States govern- 
ment will not leave the paths of rectitude, and understand the reason 
why they ought to i-efund, and choose to do so, not only will they serve 
us to the utmost of their friendship, but they will set a good example for 
imitation in tlie future intercourse between nations. They will demon- 
strate their good will to our countrj* and once more give evidence of that 
kindness which America has, so evidently, always felt for us, and which 
we are glad, gratefully to acknowledge.-' 






In considering the question of the Japanese Indemnity and 
the occurrences which led to its exaction, we have the advan- 
tage of a retrospective view. The hght which has been thrown 
upon the actions and motives of the Japanese during that un- 
settled period, by the subsequent unparalleled progress of that 
people in the arts and usages of civilized nations, and the cor- 
dial .reception extended to foreigners, establishes conclusively 
the good faith of the Tycoon's government through all the dis- 
advantages against which it was battling, and explains its ap- 
parent vascillation, by proving the truth of its assertions, that 
the policy of admitting foreigners was made a pretext by aspir- 
ing local rulers in their endeavors to weaken and destroy the 
power of the Tycoon. The success of their efforts in this di- 
rection, in 1868, marks the beginning of the era of rapid ad- 
vancement, which to-day places Japan in the front rank of pro- 
gressive nations. 

For the assault on the Pembroke the owners received all they 
demanded, (a more ridiculous and remarkable bill of damages 
was never drawn,) and the United States was paid $2,000 in 
addition; (Dip. Cor. 1864, pt. 3, p. 537.) The government 
deplored the act of the Prince, and the Wyoming inflicted very 
heavy loss in retaliation, thus vindicating the honor of the flag. 
The American Minister in Japan recognized the coTupleteness 
of these measures, and expressly declared to the government 
of Japan that he did not wish to demand any money indem- 
nity for the insult to the flag ; (see Dip. Cor. 1864, pt. 3, p. 
450.) The foreign representatives, in a memorandum, (p. 531 
of Dip. Cor., 1864, pt. 3,) expressly set forth that their instruc- 
tions from their respective governments were adverse to any 
hostile action which could be construed into an act of war, and 
on the following page show that the real object desired was an 
exhibition of the power of the western nations, fixing upon 
Nagato as the terrible example, because of his hostile attitude 
and his being then in open rebellion against both the Tycoon and 
Mikado. In order that this expedition should not be construed 
as a declaration of war, these representatives, in another mem- 
orandum, (on page 548, same vol.,) specified that " it ought to 



3 

" be regarded no otherwise than as a chastisement to be inflict- 
" ed on an outlaw or a pirate." Mr. Pruyn, in writing to Sec- 
retary Seward, under date of Aug. 3, 1864, in speaking of his 
assurances to the Japanese Government, said : " I wished also 
" to assure the government of the Tycoon that this expedition 
"was not an act of hostility to his government, but for its main- 
" tenance, and in the interests of peace, which I and my col- 
" leagues were satisfied could then be more effectually secured.'' 

In a succeeding memorandum, (on page 550,) they said: "It 
" is distinctly understood that the indemnities of which there is 
"que^tion herein, are solely those resulting from the action in 
" common of the powers represented by the undersigned. The 
" necessity of clearly defining and keeping distinct, the present 
" action in common of the four powers with combined forces, 
" and any separate action which may subsequently be entered 
" upon by one of their number, is distinctly recognized by the 
" undersigned." 

When news of the overwhelming defeat of Choshu w^as re- 
ceived at Yokohama, the foreign representatives met the gov- 
ernors of the Tycoon, and, after stating that Choshu bad been 
so thoroughly defeated that they could secure from him the 
concession of a port, and the payment of the expenses of the 
expedition, but that they foresaw^ the embarrassment which 
would result to the Tycoon's Government by their thus recog- 
nizing Choshu as an independent Prince, and their preference 
that the Tycoon should agree to liquidate the obligations of 
Choshu, thus preserving his dignity as the supreme ruler, they 
asked if he would be willing to assume these obligations, al- 
though they named no definite amount. Aware of their ina- 
bility, on account of lack of funds, to make immediate pay- 
ment, the governors wished to make the payment contingent 
upon their success in subduing Choshu and confiscating his es- 
tates; but the ministers would not listen to this, and threatened 
to deal wdth Choshu unless the Tycoon would agree, uncondi- 
tionally, to assume the payment for him, and in this strait 
the governors could do no otherwise than yield and agree to 
the payment. This point being gained, and the fear of the 



foreign representatives ignoring his government and dealing 
with Choshu, having been duly impressed upon the Tycoon, the 
next thing was to fix upon the amount. 

This was not done by negotiation, for that formahty was not 
observed in deaUng with such a weak power. Had it been 
Germany, Russia, or any other powerful nation, the case would 
have been very differently conducted. In proof of this, the 
British and American Ministers computed the losses and dama- 
ges upon the basis of the number of men of each nation engaged, 
and $2,000,000 was declared amply sufficient, even British rapa- 
city being fully satisfied. But when these ministers met Napo- 
leon's representative, he suggested that the United States had 
been invited to join for the benefit of her ''moral support^^^ and 
that this should be taken into account, and that as it would be 
just as easy to secure $3,000,000, they should demand that 
sum. 

This view, the American Minister said he ^' did not feel it 
incumbent" on him to object to, *^as the moral support afibrd- 
'" ed by the United States was considerably in excess of the ma- 
*' terial support I was enabled to give." And further, '^ I assent- 
** ed the more readily to the proposition of the Envoy of his Im- 
"perial Majesty, the Emperor of the French, to fix the amount 
" at $3,000,000, because I thought it more likely to lead to the 
" substitution of a port as a material compensation for the ex- 
"penses of the expedition;" (see Dip. Cor., 1864, pt. 3, p. 582.) 

In other words, they had measured the coffers of the Ty- 
coon's government, and concluded that while $2,000,000 would 
about drain it, the payment of $3,000,000 would be impossible, 
and they would offer the alluring bait of the privilege of opening 
another port. With all these preliminaries arranged these as- 
tute diplomatists met the plenipotentiary of the Tycoon, and 
drew up the surprising document known as the " Convention 
of October 22d, 1864." 

The verbiage and phraseology of this convention bear unde- 
niable evidence of its every provision being the result of the 
previous conferences of the foreign representatives, and its lan- 
guage is not that of negotiation, but of demand and insistance. 



and while no option is given to Japan, the foreign powers are 
to do as thej please. 

The foreign representatives, in their memorandum of agree- 
ment, wherein they determined to dispatch the expedition, ex- 
pressly set forth that no territory should be acquired, and no 
separate rights accepted by an 3^ of the powers, as the result of 
the expedition ; but in order to cover the immense indemnity 
demanded, and to appear moderate in their demand, they 
named the ransom of Shimonoseki as one of the items in their 
bill. 

The wording of the preamble is calculated to lead to the im- 
pression that a long line of outrages had been committed which 
were all to be atoned for by the payment of this small sum, 
when such was not the fact. 

By a perusal of the letter of Sir R. Alcock to Mr. Pruyn, 
(on page 495, Dip. Cor., 1864, pt. 3,) it will be seen that the hostile 
acts of the foreign representatives were instigated by the Brit- 
ish Minister, and the policy adopted by all was that outlined 
by him. In fact, that the American Minister followed the lead 
of Great Britian's representative in oppressing the friendly por- 
tion of the Japanese people, who were sadly in need of assis- 
tance against hostile factions in their own country, through 
their efforts to maintain their treaty obhgations. Although this 
may not have been apparent at that time, it has been fully dem- 
onstrated since, and we find that we were unwittingly oppress- 
ing our warmest friends by these grievous exactions. 

Under the provisions of the memorandum which the Ameri- 
can Minister insisted upon, and which he drew up himself, the 
number of men of each nation engaged in the expedition was 
to be the basis of division, and was doubtless that used by him- 
self and the British Minister in their computation of $2,000,000. 
By this method we would have received $101,976.28 of the 
$3,000,000, and at $2,000,000, which Mr. Pruyn thought am- 
ple, our share w^ould have been $67,984.19, leaving the balance 
of the $785,000 received to the credit of moral support, and 
this, too, under the broad construction of the convention, 
which allows indemnities to the wounded and the families of 



6 

the deceased in the action of the Wyoming. The question of 
the insult to the flag had long before been settled by apologies 
from the Tycoon, and the expressed declaration that no money 
would be demanded for that. Ten days before the dispatch of 
the expedition was decided upon, the American Minister, writ- 
ing to Secretary Seward, said: "I returned to this place on 
" the 5th instant, after a visit of three weeks to the city of 
" Yedo, having succeeded in securing the settlement of the 
" claims which I had been instructed to demand of this gov- 
"ernment. (Dip. Cor., 1804, pt. 3, p. 535.) And further on 
in the same letter he specifies the claims. On page 592 of 
Dip. Cor., 1864, part 3, will be found a letter from Secretary 
Seward, under date of March 18, 1864, containing a list of 
claims! to be demanded, but it contains no item for the insult 
to the flag in firing on the Pembroke and Wyoming, nor for 
any other indemnity in that connection. The Tycoon declared 
his inability to open another port, as it would precipitate a 
civil war, and was therefore obliged to agree to pay the money, 
hoping to secure extensions in the time of payment, which 
would enable him to do so. In 1866, two additional ports 
were opened, but no remission of the fine was made, and now 
that intercourse is almost unrestricted, we have made no resti- 
tution. 

As will be seen by the official accounts of this affair, the 
other three powers furnished very material aid in the action, 
but the request that the United States should be represented 
was based upon the ground that the "moral weight " of such 
representation was necessary to indicate to the Japanese the 
harmony of the foreign powers, and therefore the American 
Minister chartered a small merchant vessel and put 17 fight- 
ing men on her to give *' moral weight " to the occasion. The 
settlement of the question of division of the $3,000,000 was 
made in France in 1865. The French government claimed 
the division should be made in accordance with the memo- 
randum of Minister Pruyn ; that is, by the forces engaged ; 
but Mr. Bigelow, Minister of the United States in France, 
brought in the plea of *' moral support " and claimed an equal 



division. As Great Britain assented to this, France and the 
Netherlands, of course, did the same, and the United States 
was therefore awarded a hirge sum for " moral support," while 
the other powers were satisfied with indemnification for losses. 
Prior to this time the Japanese, while regarding the exaction 
of the indemnity as unjust, had supposed the amount was based 
upon actual losses and expenses, but when thej saw the United 
States receive a larger share than Great Britain, and one so 
enormously in excess of what the expenses of her little mer- 
chant vessel could have been, they became convinced that the 
amount exacted was largely in excess of the actual damages 
sustained, and that the one power of all others which professed 
the warmest friendship had received the excess. It was their 
expectation that all actual losses incurred through the acts of 
IS^ogato had been provided for, but that so large an excess had 
been exacted was a severe blow to their faith in the friendship 
of the United States. This feeling was modified by the act of 
Secretary Seward in setting, the whole sum aside, and virtually 
acknowledging that it was wrongfully obtained, and should be 
returned. This view has been strengthened by the subsequent 
action of Congress, and the universal expression of sentiment 
in this country in favor of restitution. 

Of the powers engaged in the expedition Great Britain's 
only loss was on that occasion, but doubtless covered every 
dollar she received. France and the Netherlands both lost 
heavily in that engagement, and besides had both suffered pre- 
vious losses, at the same place, greatly in excess of that suf- 
fered by the Wyoming, and J have no doubt were no more 
than remunerated by their awards. But in the case of the 
United States, all claims had been settled prior to the sailing 
of the expedition, and her only mission on that occasion was 
" moral support," and the mission was fulfilled. No loss of 
any kind was sustained, and nothing but the expense could be 
charged in the account. This was $11,988. The Japanese 
supposed, from the wording of the convention, however, that 
something was included for the Wyoming afiair, but they well 
knew that when $140,000 was declared to be ample for the 



8 

loss to the Wyoming, and the double insult to the flag, (which 
it had been stated was all settled,) the balance of |645,000, 
which fell to the share of the United States, was without any 
offset except the small sum of $11,988, for the expense of the 
Takiang, Is it surprising that, however friendly the govern- 
ment of Japan may be, the people of that country should have 
lost much of their admiration for the institutions of a country 
which professes so much sympathy for the weak and oppressed 
of all nations while practicing methods in their case so griev- 
ously at variance with these professions. The policy of the 
United States government from its foundation has been to re- 
quire no money indemnity for insults to the flag, but to de- 
mand apology therefor, and to accept from foreign powers 
payment for actual damages only. Both in the case of the 
Pembroke and of the Wyoming the Japanese government of- 
ficially deplored the insult, and emphatically disavowed it. 
Such an offense cannot be measured by money. The United 
States Government expressed itself satisfied with the apologies, 
and the American Minister subsequently reiterated his former 
statement that no indemnity would be claimed for the insult 
to the flag. 

It has been stated that Choshu's estates were confiscated, and 
the money paid from this source; but this is an error. The 
attempt of the Tycoon to carry this plan into execution result- 
ed in his defeat and the acquisition of more territory by Choshu, 
who remains, to this day, in peaceful possession of his estates, 
while the Tycoon lost all his power, and was deposed in 1868. 
He now lives in seclusion as a state prisoner. 

The return of this money could in no way reflect upon any 
other power, nor upon any ofiicial, for as the excess was or- 
iginally secured for " moral support," and was subsequently 
awarded to that influence upon the request of the United 
States Minister to France, and as the other powers furnished 
the material aid, the United States being the only representa- 
tive of " moral support," the other three powers received their 
awards for losses and expenses, while the amount originally 
demanded for moral support fell mainly to the lot of the 



9 

United States, and was without an offset. Secretary Seward 
was the Prime Minister who conducted the correspondence 
upon this subject, and the only one in this country who 
thoroughly understood it, and he practically declared, by his 
action in retaining the money in the State Department as a 
separate fund, that it was not justly the property of the United 
States, although it was legally so ; and in 1868 he actually 
designated it, in an official paper, as a sum in his hands " with- 
out substantial equivalent." 

As the convention did not specify that even one dollar was 
to be paid to the United States, but was general in its terms, 
and as the expedition was undertaken in common with the 
other powers, the Government could not refuse to ratify it 
without an implied censure upon its allies. After the division, 
however, the money became her own, and if she thinks her 
title to it is not as clear as it should be, she is at liberty to re- 
turn it. The foreign policy of this country and that of Euro- 
pean powers has always been at variance, especially with refer- 
ence to oriental nations. 

In the matter of outside claims I cannot see that Congress 
has any right to adjudicate claims against Japan. Even if it 
is claimed that this money is the property of the United States, 
the payment from it of a claim rejected by Japan would be 
an insult to her fair dealing, and the consideration of claims 
not presented to Japan for adjudication would imply a distrust 
of her justice, when the fact is easily established that no na- 
tion on the globe is more just in its dealings with foreigners. 
Some of the claims before Congress, in this connection, have 
the proof of falsity on their very faces, and most, if not all of 
them, are pressed merely in the hope that delay may be se- 
cured in the return of the indemnity, by incorporating a clause 
referring these claims to the State Department, and at last in- 
ducing the Japanese Government to compromise and pay the 
claimants a portion of their demands in order to release the 
fund. 

I can safely guarantee that no lawful and meritorious claim 
against Japan will be repudiated. I^one ever has been. The 



10 

state Department is the proper channel for such negotiations, 
and I feel confident that the Congress of the United States 
will not sit in judgment on ex parte cases against a great and 
liberal nation, thus establishing a precedent heretofore un- 
known in the conduct of such matters between sovereign 
powers. 

The question of interest does not, in reaUty, enter into this 
discussion, for this fund is a separate sum of money in no way 
connected with the moneys of the United States. 

As the several instalments were received, they were held in 
the custody of the Department of State, the money being paid 
into the Treasury for bonds and used in the discharge of obli- 
gations, as the money of all other purchasers of bonds ; and 
these bonds were placed in the vaults of the State Department 
under the designation of the Japanese Indemnity Fund. In re- 
paying it to Japan, it manifestly, should carry with it its own 
earnings and accumulations. In doing this not a dollar would 
be taken from the Treasury, for the bonds would be disposed 
of on the market, and the proceeds paid over to Japan. 

I do not believe this money will ever be covered into the 
Treasury, to remain as a stain on the national honor, but what- 
ever is done, should be done speedily. 

It is to the interest of both countries that the subject should 
be finally disposed of. 

The Japanese government and people have constantly before 
them the injustice of the exaction, by reason of the continued 
agitation of ^the question in this country, and the acquisition is 
not a pleasant reminiscence to the American people. I trust 
therefore that all friends of Japan will urge a final settlement. 
Secure as equitable an adjustment as possible, but whatever is 
done let it be complete. Do not oppose the final passage be- 
cause of some immaterial proviso, but let us have done with 
the matter, and cement more firmly the friendship of the two 
nations, by consigning to oblivion the errors of the past. The 
action of the House of Representatives in 1872, and of the Sen- 
ate in 1876, together with the unanimous reports of all com- 
mittees which have examined the subject, and the universally fa- 



11 

."In •/<' 

vorable comments of the American -people, have given the peo- 
ple of Japan a right to regard the ultimate restitution, of a 
portion at least, of this fund, as a forgone conclusion. 

I appeal therefore to the proverbial justice and fair dealing 
of the American people for the prompt removal of the only 
barrier which now exists to a close bond of friendship between 
two peoples, whose mutual interests will be materially sub- 
served thereby. In the interest of the commercial relations of 
the two countries ; of friendship and its beneficial results ; of 
justice, honor, fair dealing, and civilization, let the surplus of 
this fund be returned to its rightful owners — the people of 
Japan. The passage of Senate Bill No. 1002 will do justice 
to all parties in interest. 

J. M. MORRISON. 

Washington, D. C, i^e&. 9, 1880. 



LIBRARY OF CONGRESS 



012 356 748 1 f 



